The European Commission has issued binding orders requiring Apple Inc. to provide more access to iOS connectivity features to third-parties, in line with the Digital Markets Act (DMA).
The decision marks another step aimed at curbing the dominance of Big Tech and fostering competition in the digital sector.
The European Commission’s decisions, issued on Wednesday, follows a six-month-long specification proceeding designed to ensure Apple’s compliance with the DMA. The act seeks to promote fair competition by preventing large digital platforms, designated as gatekeepers, from using their market power to stifle rivals.
Apple Ordered to Enable Interoperability
The Commission’s decision mandates Apple to allow third-party manufacturers of smartphones, headphones, and virtual reality headsets to integrate their products seamlessly with iPhones and iPads. The ruling also establishes a detailed process and timeline for Apple to respond to interoperability requests from app developers.
Apple strongly opposed the decision, arguing that it would disadvantage its users and benefit competitors unfairly. In an emailed statement, the company said, “Today’s decisions wrap us in red tape, slowing down Apple’s ability to innovate for users in Europe and forcing us to give away our new features for free to companies who don’t have to play by the same rules.” Apple also vowed to continue engaging with the Commission to address its concerns.
Regulatory Justification and Next Steps
EU antitrust chief Teresa Ribera defended the decision, stating, “With these decisions, we are simply implementing the law and providing regulatory certainty both to Apple and to developers.” She emphasized that interoperability would enhance competition and innovation in the European market, benefiting consumers.
The ruling sets out specific technical measures to facilitate interoperability:
- Improved access to iPhone features for third-party devices, including seamless integration for smartwatches, headphones, and other connected products.
- Faster data transfers using peer-to-peer Wi-Fi connections and near-field communication.
- Streamlined device pairing and notification functionalities for third-party manufacturers.
Additionally, the Commission detailed a more transparent and efficient process for developers seeking interoperability with Apple’s hardware and software. This includes enhanced access to technical documentation, timely communication on feature availability, and predictable timelines for request reviews.
Legal Implications and Compliance Timeline
The decisions are legally binding, and Apple is required to implement the specified measures within the stipulated timeframe. Failure to comply could trigger a formal investigation and potential fines of up to 10% of Apple’s global annual revenue.
The DMA, which was enacted to promote fair competition in the digital sector, applies to companies designated as gatekeepers—those that control key digital platforms serving as critical intermediaries between businesses and consumers. Apple was officially designated as a gatekeeper for its iOS and iPadOS operating systems in 2023 and 2024, respectively.
While the current specification proceedings clarify Apple’s obligations, they do not assess whether the company has violated the DMA. However, the Commission has the authority to launch non-compliance investigations should Apple fail to meet the mandated requirements.
Industry and Market Reactions
The ruling has been met with mixed reactions from industry stakeholders. Some developers and competing hardware manufacturers view the decision as a crucial step toward a more open and competitive digital ecosystem. Others, including Apple supporters, argue that excessive regulation could hinder innovation and security.
Henna Virkkunen, the EU’s Executive Vice-President for Tech Sovereignty, Security, and Democracy, highlighted the broader implications: “The Digital Markets Act opens up opportunities in the digital market to companies, especially startups and SMEs, while preserving the gatekeepers’ space for innovation. The clear and targeted measures adopted today achieve this balance and maximize innovation opportunities for all digital players.”